Crude Oil Prices Surge Amid US-Iran Tensions

Crude oil prices surged by nearly 7% on Monday, reaching Rs 9,759 per barrel in futures trading, driven by heightened global volatility after the US declared a blockade of the Strait of Hormuz. This move followed unsuccessful negotiations with Iran, leading to concerns over a potential supply disruption.

On the Multi Commodity Exchange (MCX), the April crude oil contract saw a significant rise, climbing Rs 606 to Rs 9,759 per barrel amid robust trading activities. Similarly, the May contract advanced by Rs 550, reaching Rs 9,050 per barrel. The sharp increase has been attributed to mounting US-Iran tensions.

The global market mirrored this trend, with West Texas Intermediate (WTI) crude for May delivery escalating by 8.37% to $104.65 per barrel, and Brent oil for June advancing by 7.93% to $102.75 per barrel. Despite this, Saudi Arabia's ability to restore full pumping capacity provided some relief to supply concerns.